Quick answer: Yes. Federal law lets you use a 529 plan for K-12 tuition at a public, private or religious school, and since January 1, 2026 the limit is $20,000 per student each year, counted across all of that student’s 529 accounts. The federal list of qualified K-12 expenses also grew in July 2025 to include curriculum, books, online educational materials and more. Whether your state treats those withdrawals the same way is a separate question, and it is the one to check first.
This guide covers the federal rule, which expenses count, how states differ, and how to request a withdrawal and keep the records. It is general information, not tax advice. Families should confirm the details with their 529 plan or a tax professional. If a state ESA or voucher is also in the picture, see our guide to ESAs, vouchers and school choice funding for online school.
Table of Contents
Can you use a 529 for private school?
Yes. In July 2025, Section 70413 of Public Law 119-21 rewrote the K-12 rule in Section 529(c)(7) of the tax code. The law now refers to expenses “in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school.”
Two dates matter:
- Expanded list of expenses: applies to distributions made after July 4, 2025.
- $20,000 limit: applies to taxable years beginning after December 31, 2025. For 2025, the limit was $10,000, as the 2025 edition of IRS Publication 970 shows.
The limit applies to each student, not each account. The statute, in 26 U.S.C. 529, adds together K-12 expenses paid from all of a student’s state 529 programs in a tax year. If a parent and a grandparent each hold an account for the same child, one $20,000 cap covers both.
What counts as a qualified K-12 expense?
The statute lists the items below. Each one must connect to a student enrolled in an elementary or secondary school.
| Expense | What the law says |
|---|---|
| Tuition | Counts. |
| Curriculum and curricular materials | Counts. |
| Books and other instructional materials | Counts. |
| Online educational materials | Counts. |
| Tutoring or educational classes outside the home | Counts if the instructor is not related to the student and is a licensed teacher in any state, has taught at an eligible educational institution, or is a subject matter expert. |
| Standardized test fees | Fees for a nationally standardized norm-referenced achievement test, an AP exam, or exams related to college admission. |
| Dual enrollment fees | Fees for dual enrollment in an institution of higher education. |
| Educational therapies for students with disabilities | Counts when provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical and speech-language therapies. |
Source for the table: Section 70413 of Public Law 119-21. IRS Publication 970 lists the same items. Plans do not cover everything a family buys for school. One state plan, Invest529, names health insurance, transportation and extracurricular activities as items that do not qualify.
Does an online private school qualify?
The federal text says “public, private, or religious school.” It does not list online schools or exclude them. In practice, the plan administrator decides what documents it needs to treat a school as eligible, and each plan sets its own rules for that. Some plans also state that homeschool costs are not covered. Invest529, for example, says homeschools are not recognized as eligible K-12 schools under federal law.
Before your first withdrawal, ask your plan two things:
- Does it treat an online private school as an eligible K-12 school, and what proof does it ask for?
- Does it pay the school directly, or does it only reimburse the account owner?
State tax treatment of 529 withdrawals for K-12
The federal rule decides whether you owe federal income tax on the earnings you withdraw. Your state decides its own tax treatment. A state that does not follow the federal K-12 rule can tax the earnings on a K-12 withdrawal and take back a deduction you claimed earlier for contributions. The 2025 changes add a second layer to check: a state may follow the older tuition-only rule but not the new expense list or the $20,000 limit.
The table below groups states using two January 2026 articles from SavingForCollege.com: which states conform to federal 529 law and which states offer K-12 tax benefits. Both articles are secondary sources and each notes that states may not yet recognize the 2025 changes. Treat the table as a starting point and check your state tax agency or plan disclosure for the current rule.
| Group | States named in the sources | What it means for a K-12 withdrawal |
|---|---|---|
| State does not treat K-12 tuition as a qualified 529 expense | California, Colorado, Hawaii, Illinois, Michigan, Minnesota, Nebraska, New York, Oregon, Vermont | The earnings part of the withdrawal can be subject to state income tax, and an earlier state deduction can be recaptured. California adds a 2.5% tax on earnings from non-qualified withdrawals, which its state plan, ScholarShare 529, also states. |
| State has no personal income tax | Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming | No state income tax on the withdrawal, and no state deduction for contributions. |
| State gives a deduction or credit for 529 contributions, with an in-state plan required | Georgia, Ohio, Virginia and Wisconsin are examples | The benefit comes from the contribution. Amounts and caps vary by state. |
| State gives a deduction or credit and accepts any state’s plan | Kansas, Maine, Missouri and Pennsylvania are examples | The benefit comes from the contribution. Amounts and caps vary by state. |
The sources disagree about a few states (Arizona, Connecticut, Montana and New Mexico), so they are left out of the table. If you live in one of them, read your state’s own page.
Virginia’s plan shows what a primary source looks like. Invest529 states that withdrawals for K-12 tuition are free from federal and Virginia state taxes. Look for the same kind of statement on your own plan’s site.
Worked example: how the limit adds up
This is a sample for one student in 2026. The amounts are made up to show the arithmetic and are not school prices.
| Item paid in 2026 | Amount |
|---|---|
| Private school tuition | $14,000 |
| Curriculum and online materials | $900 |
| Two AP exam fees | $190 |
| Tutoring from an unrelated licensed teacher | $1,200 |
| Total qualified K-12 expenses | $16,290 |
The total is under $20,000, so the whole amount can come from 529 accounts for federal purposes. If a parent withdrew $9,000 and a grandparent withdrew $7,290 from separate accounts, the two withdrawals together are $16,290. Both count toward the same cap.
Now suppose the family withdrew $22,000 in total. Only $20,000 is within the K-12 limit. The IRS explains in Publication 970 that if total distributions for the year are more than the adjusted qualified education expenses, part of the earnings is taxable, and a taxable distribution generally carries a 10% additional tax on the amount included in income. The same applies to a withdrawal used for something that is not a qualified expense.
Expenses paid by other money also matter. Publication 970 reduces qualified expenses by tax-free educational assistance and refunds, so the same bill cannot be counted twice. If your child also receives scholarship or state funding, ask your plan or tax professional how that affects the amount you can withdraw.
How to request a 529 withdrawal for school tuition
Every plan has its own forms, but the steps are similar.
- Get the bill. Ask the school for an invoice or statement that shows the student’s name, the dates it covers and itemized charges.
- Choose who gets paid. Most plans offer payment to the school, to the account owner, or to the student. Publication 970 treats the student as the recipient only when the money goes to the student or directly to the school. Otherwise the account owner is the recipient.
- Submit the request. Use the plan’s online form or paper form, and state that the withdrawal is for K-12 expenses. Some plans can pay the school directly. Invest529 says it cannot pay a third-party tuition payment service.
- Match the year. Take the withdrawal in the same calendar year you pay the expense. The IRS compares the year’s distributions with the year’s qualified expenses.
- Watch for Form 1099-Q. The plan sends one for each account that paid out money during the year. Box 1 shows the gross distribution, and boxes 2 and 3 split it into earnings and your investment.
Records to keep
The plan does not review your receipts. The IRS or your state may ask for them later, so Invest529 states that the account owner is responsible for keeping adequate records. Keep these in one folder for each student and each year:
- Invoices and receipts that show the student’s name and each charge
- Proof of payment, such as a bank record or card statement
- The plan’s withdrawal confirmation and Form 1099-Q
- A page listing the school’s name, accreditation and that it is a private K-12 school
- Receipts for curriculum, books, online materials, test fees and dual enrollment fees
- For tutoring, the tutor’s name and proof of teaching license or subject expertise, and a note that the tutor is not a relative
- For therapies, the provider’s license or accreditation
- A running total of the year’s withdrawals from every account for that student, to stay under $20,000
- Your state’s tax form instructions for 529 withdrawals, if your state taxes them
What this means for an online private school family
Forest Trail Academy is a private, accredited online K-12 school in West Palm Beach, Florida. Courses are self-paced, taught by certified teachers, and families can enroll in any week of the year. FTA lists its tuition on its tuition rates page, and its payment options page and the student tuition page explain how families pay. Neither page mentions 529 plans, so ask admissions what invoice or statement they can provide for your plan.
FTA also lists ESA funding from Alabama, Arizona, Arkansas, New Hampshire, South Carolina and Tennessee on its voucher announcement page. For more on comparing costs, see how much it costs to go to school online and public vs private online K-12 programs.
Frequently asked questions
How much can you take out of a 529 plan for K-12 tuition?
Up to $20,000 per student per year for federal purposes, starting with the 2026 tax year. For 2025 the limit was $10,000. The cap covers all of one student’s 529 accounts together.
Can you use a 529 plan for private school and for other costs?
Yes. Under the 2025 law, the qualified list includes curriculum, books, online educational materials, qualifying tutoring, standardized and AP exam fees, dual enrollment fees and educational therapies for students with disabilities, in addition to tuition.
Can you use a 529 for an online private school?
The federal rule covers a “public, private, or religious” elementary or secondary school and does not exclude online schools. Ask your plan whether it accepts the school and what documents it wants.
Can I use a 529 for homeschool costs?
Some plans do not treat a homeschool as an eligible school. Invest529 says homeschools are not recognized as eligible K-12 schools under federal law. Curriculum bought for a child enrolled in an eligible school is a separate case, so check with your plan.
Do all states follow the federal 529 K-12 rule?
No. Some states treat K-12 withdrawals as non-qualified for state tax, and states may be slower to adopt the 2025 changes than the federal government. See the table above and confirm with your state tax agency.
What happens if I withdraw more than $20,000 or use the money for a non-qualified expense?
Part of the earnings is generally taxable income, and the IRS adds a 10% additional tax on the amount included in income. Your state may add its own tax.
Is it better to keep a separate 529 account for K-12 and college?
Some families open separate accounts because K-12 and college costs fall at different times and the investments can match each goal. Your plan or a financial professional can help you decide.
Questions about enrolling your child in an accredited online private school? Book a call with admissions.
